Bogleheads.org

Thanks, both. Retired@50 - I do pay 1% to both planners. I've never really considered that cost as part of my "expenses" for the year, as it is never something I pay out proactively, but makes sense to do so. Appreciate the context on how this group typically approaches money management. Happy to help out. I realize you never have to write a check to your planners, as they just dip into your cookie jar of money, perhaps monthly or quarterly. In any event, if both you and the planners are withdrawing from the portfolio, that's a cost that must be reckoned with. I'm not saying you cannot succeed if you continue to use the 1% AUM model, but I think it will make things far easier if you spend a few months, or even up to a year, to le...

A few hours ago you were talking about 98% and 99%; now you're talking about 18% and 82%. That doesn't make sense either. Not me Your probably confused with another Post Sorry, my fault; that was in this thread but posted by someone else. In any case, it still doesn't make sense that you'd go from 18% to 82% (which still doesn't seem all that high, incidentally) by simply adding funds. I'm assuming when you mentioned three funds you have some variation on the three-funds discussed here. You'd have to have a very inappropriate allocation now to see such a change in success probability. Basically Target Ret 2025 Tr Sel $443K Instl 500 Index Trust $264K Inst Tot Bd Mkt Ix Tr 163K I don't know if you're interested, but you can use the Vanguard...

I have decided that I would like to semi-retire early, at age 42, and work only for pleasure and likely part-time at lower paying jobs, supplementing investment income. I want to reduce my taxable income as much as possible starting in 2024. Current situation: 1. $1.3M in brokerage 2. $930K in 401K 3. $260K ROTH IRA 4. $1.2M in stock options at the company I am leaving, most of which has been held for over a year 4. About to get ~$200K (after tax withholdings) in severance 5. About to get ~$600K of equity out of a home sale (not taxed) I think I'll need on average ~$100K a year to live based on my new budget right now, which may go up/down based on costs in any given year. My goal is to have ~20-30K of that come from part-time work, so reg...

I received a call yesterday from a gentleman at Gulf Coast Western offering an opportunity to invest in an oil well. They specialize in exploration and development of domestic oil and gas reserves. Currently partnership opportunity is for 4 wells in Colorado. Minimum $50k. My interest is strictly academic at this point but has anyone ever heard of this entity? Has anyone on here ever ventured into a partnership opportunity like this? If so, how was your experience? If it's such a great opportunity, why are they calling strangers rather than having friends and family invest? My thoughts exactly The quote below is often associated with gold mines, but I suppose the same could be said about an oil well. A mine is a hole in the ground. The dis...

I'm trying to understand brokerage CD's and YTM. I have done a lot of reading and still have a lot to learn but I am still confused. My advisor is telling me the current brokerage CD's are paying approx. 5% YTM for 3 months. I'm finding hard to believe that I will get 5% on my money for the 3 months. Ex. if I purchase for $10k at the end of 3 months I will be paid $500 in interest totaling $10.5K My thoughts are I would get 1.25% for the 3 months, which I would receive $120 in interest. Please educate me on the interest paid on brokerage CD's. I'm eager to learn.! The 5% figure is an annual rate of return. You're correct that 5% / 4 would be the 3-month return. Regards, Thank you, more confirmation my new "Fiduciary" advisor is f...

grumpy30000 wrote: ↑Thu Mar 23, 2023 12:06 pm I'm trying to understand brokerage CD's and YTM. I have done a lot of reading and still have a lot to learn but I am still confused.

My advisor is telling me the current brokerage CD's are paying approx. 5% YTM for 3 months. I'm finding hard to believe that I will get 5% on my money for the 3 months. Ex. if I purchase for $10k at the end of 3 months I will be paid $500 in interest totaling $10.5K

My thoughts are I would get 1.25% for the 3 months, which I would receive $120 in interest.

Please educate me on the interest paid on brokerage CD's. I'm eager to learn.!

The 5% figure is an annual rate of return. You're correct that 5% / 4 would be the 3-month return.

Regards,

I would suggest that if you do keep assets split at multiple firms, that you put all your tax-deferred IRA money into one account at one firm. This will make RMD calculations easier as you get older and possibly lose some cognitive ability. Regards, The OP doesn't need to nibble his or her RMD partly out of each account. It can all be taken from one account if the other places know not to do that automatically. I agree (individual nibbling isn't required), but there is still the burden of adding up multiple IRA balances from Dec. 31 of the prior year and doing the math on the RMD worksheet. If the OP experiences any cognitive decline this sort of arithmetic exercise could prove challenging in later years. Obviously, it's the OP's call as t...

8301 wrote: ↑Thu Mar 23, 2023 10:37 am My CA tax exempt munis (interm. & long terms) show significant long term capital losses. Are there any downsides with TLH and buying them back after a wash sale period? I badly need offset both LTCG and STCG from selling employer stock shares. Is it safe to assume that there may be no drastic price upswing of CA munis? I am in the CA 9.3% tax bracket and also subject to NIIT and Medicare surcharge.

There's certainly no harm in harvesting the losses. If you're willing to sit out of the market for a while, you could consider holding the cash proceeds in the CA muni money market fund VCTXX.

I have no idea what will happen to CA muni bond fund share prices in the interim.

Regards,

The percentage in equities (~30%) makes me uncomfortable ... because if she has enough, why take that risk? I've been telling her when she needs cash to draw that down first. Is this the right call? Welcome to the forum. Generally speaking, holding around 25% - 30% in equity is what's supposed to help the portfolio keep up with inflation. I think Vanguard's most conservative blended fund is the LifeStrategy Income fund with a 20% stock / 80% bond mix. In your mother's case, with a low withdrawal rate, she'll likely be fine under almost any future circumstance, but I'd still consider using a 30/70 mix to be a prudent choice. She may live another 20 years, and quite often, medical costs can spike in late retirement years. Having a portfolio ...

deltaneutral83 wrote: ↑Thu Mar 23, 2023 9:19 am I have a very small nominal amount , i.e. biscuit money, from my VIOV holding in my taxable showing up. Held at Merrill. I know it probably goes Ex-D right about now but this isn't that? Anyone else with VIOV seeing this?

I would imagine it's either related to the recent 2:1 split, or the upcoming $0.1844 dividend per share.

Otherwise, no idea.

Regards,

Marseille07 wrote: ↑Thu Mar 23, 2023 1:07 am Bond funds don't lock in rates, as the fund manager keeps shuffling bonds.

If locking in is your goal, you need to buy bonds directly.

+1

It's nice to want to "lock" something in, but that requires the cooperation of the person or entity on the opposite side of the trade.

Regards,

InvestforSuccess wrote: ↑Wed Mar 22, 2023 7:35 pm What's the best tool out there now for tracking net worth and asset allocation? Historically we've used Vanguard's portfolio tracker and the ability to manually add outside accounts, but I am planning to move from Vanguard to Merrill Edge so this won't be an option going forward.

I use a spreadsheet, updated quarterly. It's of my own making, but you might find something useful in this wiki page(s) (linked below).

See links:
https://www.bogleheads.org/wiki/Tools_and_calculators

https://www.bogleheads.org/wiki/Net_worth

Regards,

InvestforSuccess wrote: ↑Wed Mar 22, 2023 7:24 pm Is anyone aware of a financial planning tool that's usable by the ordinary investor? We have an advisor that we pay hourly to run scenarios for us, but our situation keeps changing and we don't want to have to keep paying her by the hour to run additional scenarios (scenario being things like, "if my wife takes a job that only pays half of what she currently makes, will we still be on track?")

Try this page: https://retirementplans.vanguard.com/VG ... h_sec=n#!/

Play around with each of the options.

Welcome to the forum.

Regards,

msaffer wrote: ↑Wed Mar 22, 2023 4:44 pm ... Thanks.

Congratulations on your first post.

Who had the over/under on 4 years, 5 months before posting?

Regards,

dips wrote: ↑Sun Mar 19, 2023 9:32 pm ...I was looking various options where it could gain some profit.

I guess it depends on how you define profit.

Unless or until any of those options are paying a higher rate than inflation (after taxes), you're still losing purchasing power.

If "profit" is simply having a higher number of dollars than when you started, any of them will work.

Regards,

McQ wrote: ↑Sun Oct 30, 2022 11:49 pm
I hope you will understand that cognitive dissonance prevents me from accepting the truth of your dismissal of older data; years of sweat equity on my part would be rendered futile.

This sounds a little bit like what an active stock picking fund manager would say when confronted with the reality of a SPIVA report.

Regards,

jginseattle wrote: ↑Wed Mar 22, 2023 5:27 pm I almost feel as if now I don't need to bother to read the book.

+1
It's not often you get a 3,600 word summary about a book.

Regards,

It's sort of Fight Club Rule 1 on this forum with regards to discussing Crypto and other "greater fool" investments, so we should probably drop that line of inquiry. A more generic approach is to say it's okay to sell an investment that has lost money unless you believe (with some confidence) that it will gain value faster than the alternative investment you will buy from the proceeds of the sale. So, someone decided to buy Company X's stock when it was hot instead of a total market index fund, and X lost 50% of its value within weeks. Should they sell the loser and use the money to buy total stock marrket, or hope and wait for X to recover? Unless they feel it is likely that Company X will grow faster than the total market in th...

hotajax wrote: ↑Wed Mar 22, 2023 4:49 pm So why should I sell now and guarantee a loss?"

So you can harvest the loss and write it off on your income taxes.

Regards,

ebeb wrote: ↑Wed Mar 22, 2023 4:18 pm

retired@50 wrote: ↑Wed Mar 22, 2023 4:02 pm Hold it.

Sell it and dump the cash into VTI

This is probably the right approach, but my suggestion was designed to keep the OP from making the same mistake, at least until the share price goes above his purchase price. Since the OP said it was a small position that he/she could afford to lose, I thought holding the stock would serve as an inexpensive behavioral coaching mechanism.

See also: https://www.bogleheads.org/wiki/Behavioral_pitfalls

Regards,

Bought FRC @ $30 because I thought it was a good bank caught up in the overreaction of SVB.. Long time Bogleheader so I know better, but that's how it goes sometimes. Relatively small position (and also money I can afford to lose), but where do I go from here? Do I take my medicine ASAP and move on? Or at this point (down >55%) is there enough of a possibility of a recovery that I should just hold on? Obviously every situation is different, but looking for thoughts here. Hold it. Then, create a good till canceled limit order to sell at $31. If that order never triggers, and you have to stare at the FRC holding every time you login, you'll have yourself a constant reminder why picking individual stocks is a bad idea. Welcome to the forum. R...

hotajax wrote: ↑Wed Mar 22, 2023 12:09 pm
How do you know what funds and ETF's are tax efficient?

This thread may be of interest. There is a spreadsheet linked in the first post that allows you to customize it to your situation.

Tax Efficiency 2022: viewtopic.php?t=397966

Regards,

Is the "part 2" account a taxable account? If so, you may want to keep tax efficiency in mind when making your fund selections. If you're in a high tax bracket, that could mean using a Vanguard tax-exempt municipal bond fund instead of a regular taxable bond fund. While paying heed to the idea of tax efficiency, it may also be a benefit to hold your bond allocation in a tax-deferred account if you have one. Many people use taxable and Roth accounts for nothing but stock index funds. For more on selecting funds, consider the guidance in the tax efficient fund placement wiki page. Otherwise, if this all seems like too much work, you could simply use the Vanguard 2030 retirement fund (VTHRX) or at least mimic the asset mixture of th...

RETIRE ONE DAY wrote: ↑Wed Mar 22, 2023 1:45 pm
tax bracket 24%

Based on this ^^^, you should go to the effort of reading the wiki page I linked above on tax efficient fund placement.

If you decide to use a tax-exempt municipal bond fund from Vanguard in your taxable account, you can also consider a state-specific muni fund if you live in CA, MA, NJ, NY, OH, or PA. See the Vanguard site for specifics.

Regards,

Is the "part 2" account a taxable account? If so, you may want to keep tax efficiency in mind when making your fund selections. If you're in a high tax bracket, that could mean using a Vanguard tax-exempt municipal bond fund instead of a regular taxable bond fund. While paying heed to the idea of tax efficiency, it may also be a benefit to hold your bond allocation in a tax-deferred account if you have one. Many people use taxable and Roth accounts for nothing but stock index funds. For more on selecting funds, consider the guidance in the tax efficient fund placement wiki page. Otherwise, if this all seems like too much work, you could simply use the Vanguard 2030 retirement fund (VTHRX) or at least mimic the asset mixture of the...

DucatiScotty wrote: ↑Wed Mar 22, 2023 1:11 pm
Are there any other good reasons to keep more than one retirement account once retired and drawing from it?

Thank you,
Scott

The reason that seems to pop up on the forum is just in case of a website or I.T. problem at one firm, or if one firm gets hacked. I've not noticed a website problem that lasted long enough to bother me, so I just use Vanguard.

I would suggest that if you do keep assets split at multiple firms, that you put all your tax-deferred IRA money into one account at one firm. This will make RMD calculations easier as you get older and possibly lose some cognitive ability.

Regards,

catnamedspot wrote: ↑Wed Mar 22, 2023 1:03 pm I know the the Total Money Stock market is a wider assortment of companies - but can there a case be made for the SP having more stable, reliable companies? What things do you consider when evaluating both these indexes?

I think you mean total stock market, not money market, but putting that aside...

Some people want to own the next Tesla or other "hot" stock before it becomes successful enough to be included in the S&P 500 index, so they buy the total stock market index fund instead.

In reality, the difference between the two isn't very large, assuming you can even see it on a 10-year performance chart. So, if you already own one of these two, it's probably easiest to just stick with what you have.

Regards,

Thanks. I may end up calling Fidelity since the divisor they are using is slight different from the one I calculated based on some examples I had seen. Or I might just use the larger withdrawal since it is less than $1K difference. You might find this exchange between Alan S. and myself useful... See link: https://www.bogleheads.org/forum/viewtopic.php?p=6911715#p6911715 Regards, Thanks. I followed the example in this article. Obviously it could be wrong. https://www.morningstar.com/articles/1125762/who-does-and-doesnt-get-to-skip-rmds-under-the-new-10-year-rule Noticed they have a new article that I will read that was just posted. https://www.morningstar.com/articles/1145198/how-the-3-10-year-rules-work-for-inherited-iras I think the firs...

I am in the same boat as you. But they dont look the same at all to me... SWVXX, expense ratio .34%, tax listed as prime VUSXX expense ratio .08% and state tax free this is a big difference, no? just expense ratio on $100k SWVXX = $340 annual VUSXX = $90 annual Expense ratios are important, but less so with money market funds. The real key with a money market fund is to compare the SEC yield(s) among the choices. Picking the higher yield isn't always the way to go because of tax issues. Some money market funds seek to help investors by using treasury products, so the interest isn't taxed at the state level. People in low tax brackets or people in no-income-tax states like Florida don't care about that. Vanguard is routinely regarded as the...

rich126 wrote: ↑Wed Mar 22, 2023 6:57 am Thanks.

I may end up calling Fidelity since the divisor they are using is slight different from the one I calculated based on some examples I had seen. Or I might just use the larger withdrawal since it is less than $1K difference.

You might find this exchange between Alan S. and myself useful...

See link: viewtopic.php?p=6911715#p6911715

Regards,

sheople2 wrote: ↑Wed Mar 22, 2023 9:08 am What is the name of the older Vanguard chart...

It's like a YTD history showing several decades via pie charts of stocks/bonds and their respective estimated YTD.
Vanguard on the phone couldn't help me without the name, which I would just then put into their search.

The site has totally changed, so the tools I was familiar with are not appearing - at least not without the right title.
Thank you.

Is this what you mean?

See link for historical performance averages of a variety of portfolio mixtures.
https://investor.vanguard.com/investor- ... allocation

Regards,

He had stated .38% on average. FYI I am tired and the Missus will be in 9 months I'm a bit confused by the "on average" remark. If that 0.38% is an AUM fee, that amounts to over $5,200 per year if he's managing all of the amounts mentioned above. OR, is that simply the average expense ratio of the mutual fund investments he intends to use? I'll reiterate. Knowing exactly what you're paying for, and exactly how much it's going to cost are important aspects of hiring any advisor. See this (linked) article by Jason Zweig of the Wall Street Journal for the 19 questions to ask your financial adviser . Also, see the wiki page on investment advisers. https://www.bogleheads.org/wiki/Investment_adviser Regards, The .38% is the expense fee...

TheYoungestEngineer wrote: ↑Tue Mar 21, 2023 7:26 pm Thank you so much everyone for the kind replies. Clearly I have a lot of reading to do. Will follow up with another post down the road once I've read some strategy.

Really value all of you for taking time to post valuable information and links. Next post will include portfolio breakdown strategy.

Glad to read that you're not discouraged, and are willing to engage. Some youngsters come here looking for hot stock tips - and are disappointed.

Not to pile on, but here's some additional reading by one of the best financial authors around. William J. Bernstein "If You Can".

Regards,

jebmke wrote: ↑Tue Mar 21, 2023 3:28 pm Mine shows up in Portfolio Watch. I have no idea if it is accurate but it looks right.

I calculate my weighted average in a spreadsheet, and it matches portfolio watch, at least it does when rounded to the nearest hundredth.

My spreadsheet says 0.0685% and Vanguard portfolio watch says 0.07% - close enough for me.

Regards,

Thank you so much everyone for your help and assistance. A few thoughts come to mind after reading your post - Also, welcome to the forum. 1. I'd hit pause on the house idea. The SF Bay Area is way too expensive for someone with your income, unless you're willing to commute 100 miles or live in a chicken coop. 2. Also, I'd cease the individual stock picking activity. Consider selling the individual stocks, harvest the loss for the future tax write-off and put the proceeds into a sensible total stock market index fund like VTI. 3. Make a plan for how you intend to invest. There is a wealth of knowledge in this forum and on the wiki pages. I urge you to spend some time reading and learning about investing the "Boglehead" way. See l...

Zso wrote: ↑Tue Mar 21, 2023 6:01 pm He had stated .38% on average.

FYI
I am tired and the Missus will be in 9 months

I'm a bit confused by the "on average" remark.

If that 0.38% is an AUM fee, that amounts to over $5,200 per year if he's managing all of the amounts mentioned above.

OR, is that simply the average expense ratio of the mutual fund investments he intends to use?

I'll reiterate. Knowing exactly what you're paying for, and exactly how much it's going to cost are important aspects of hiring any advisor.

See this (linked) article by Jason Zweig of the Wall Street Journal for the 19 questions to ask your financial adviser.

Also, see the wiki page on investment advisers.
https://www.bogleheads.org/wiki/Investment_adviser

Regards,

If it's an inherited traditional IRA, then all withdrawals are taxed. Which of course includes the "growth".

If it's an inherited Roth account, then it's another story.

Regards,

Backroads4Me wrote: ↑Tue Mar 21, 2023 5:43 pm They do not have a long-term care policy.

Based on this, you should scrap my earlier suggestion to use savings bonds in an heir's name.

I'd say to keep it relatively liquid in T-bills (52 weeks or less). End of life health care costs can certainly be substantial. The existing cash flow may seem paltry once high medical bills or the costs of assistance with activities of daily living start to occur. Not everyone faces these costs, but many seniors do.

Regards,

Zso wrote: ↑Tue Mar 21, 2023 5:19 pm
We have been thinking about consolidating everything into TIAA. Since we have met with their advisor.
He has been very straightforward and suggested that he can manage the TIAA account but not Vanguard. In order to manage everything. I would have to transfer my 401k plan to a TIAA IRA account.

I am tired of managing which I not too good at!
So the question is should I do it? Any help would be appreciated.

ZSO

What will you have to pay the adviser?

A flat fee, an assets under management fee, something else?

The amount you pay for advice can have a big impact on your retirement.

Regards,

I would like to recommend a single 60/40 (stock/bond) mutual fund or etf at market weighting for my mom for simplicity. This is in a taxable account and I would like to keep costs down. I am looking at VBIAX (Vanguard Balanced Index Fund Admiral Shares; 0.07 ER) and AOR (iShares Core Growth Allocation ETF; 0.2 ER). She is in the 24% federal and 6.25% state (NY) What are the tax differences for each? I also expected them to have similar returns, but it turns out VBIAX has only US equity and AOA has international as well. Vanguard does have other 60/40 funds. The LifeStrategy series offers a globally diversified 60/40 fund (VSMGX). The trouble with using these blended funds is that they often use taxable bonds for the bond component. If you ...

MrCheapo wrote: ↑Tue Mar 21, 2023 4:09 pm ... I like it because:

c) It delivers capital gains so it is tax efficient in my after-tax account

Item c) above is typically considered to have a negative tax impact because index funds don't generally deliver capital gain distributions at all. So, the overall tax cost of this fund is higher, on a relative basis.

Morningstar rates the 3-Year Tax Cost Ratio for the fund at 2.61, while the average fund for the category has a lower tax cost rating of 1.48.

In other words, those annual ST and LT capital gains distributions aren't seen as an efficiency. It's really just more "forced income" which many investors seek to avoid.

Regards,

10b-8 wrote: ↑Tue Mar 21, 2023 3:56 pm
One more question: would you keep the same holdings in all three accounts or distribute them in a specific way?

This can be done in a variety of ways, but if you really seek the most tax-efficient solution, then you could follow the guidance in the tax efficient fund placement wiki page.

If you find that untenable or inconvenient for any reason, then mirroring accounts, with similar allocations in each account, is typically considered "good enough".

Regards,

Does VUSXX still have tax-free from a state tax perspective? Where do I find the list of the states where it is tax-free? I thought I saw it somewhere. Typically it is, however, the earnings from repurchase agreements are subject to state and local tax. Currently the fund holds about 25% in repurchase agreements. Early 2024 Vanguard will publish exactly how much of the 2023 dividend is a result of US obligations, as a percentage of the total dividend for the year. Below is a link to the 2022 version as an example - look at the bottom of pages two/three for some state specific comments. https://www.vanguard.com/pdf/USGOIN_2023.pdf I'm wondering if I even want to bother with VUSXX vs VMFXX. I'm in the 22% tax bracket. You'll pay Federal (22%...

Does VUSXX still have tax-free from a state tax perspective? Where do I find the list of the states where it is tax-free? I thought I saw it somewhere. Typically it is, however, the earnings from repurchase agreements are subject to state and local tax. Currently the fund holds about 25% in repurchase agreements. Early 2024 Vanguard will publish exactly how much of the 2023 dividend is a result of US obligations, as a percentage of the total dividend for the year. Below is a link to the 2022 version as an example - look at the bottom of pages two/three for some state specific comments. https://www.vanguard.com/pdf/USGOIN_2023.pdf I'm wondering if I even want to bother with VUSXX vs VMFXX. I'm in the 22% tax bracket. You'll pay Federal (22%...

I have reviewed the "Required Disclosure Information" document for my plan. I notice the following fees: In-Service Withdrawal Fee: $25 per transaction (does anybody know what this means?) Minimum Required Distribution Fee: $25.00 per distribution year (an automatic $25 fee every year I need to do a required minimum distribution?) Looks like fees I will have to incur once I start withdrawing money. I get a generous match from my employer, which I max out, but I'm hesitant to put more money into the 401(k) for fear of getting fleeced with fees. I'm already 100% in a Target date fund to minimize transactions and the associated fees. Also the document says: "please keep in mind that fees are subject to change". Thank you f...

Backroads4Me wrote: ↑Tue Mar 21, 2023 1:17 pm ... Another stretch plus is that he would love to not pay taxes on it and for the kids to benefit from a step up in basis.

I'm not sure the above statement is reasonable if he won't consider the stock market.

The added condition of not paying taxes and getting a step up in basis cries out for Berkshire Hathaway B shares, not that I'd recommend that.

He could avoid paying taxes by using US Savings bonds in the heir's names.

Regards,

Hello Everyone, I am a new father and would like to establish an appropriate financial setup for my child. I would also like to do the same for any future children. We do have a few checks coming in from friends and family so I would like to decide my next steps in the near future. Goal: to establish money to grow. This is not intended for college savings I would like to open an account at a local credit union (they usually deposit $25 for children as a match). This can be used as a parking place for money over the years. I would also like to open a sort of brokerage account to invest in index funds (Boglehead-influenced funds of course, ex: Total Stock Market, 500, etc). What is the best type of brokerage account (I prefer Fidelity): UGMA...

Do you have a 401k plan at work? If so, will it accept the funds in the Traditional IRA? Regards, Huh. This had never occurred to me as a way to avoid the pro-rata rule. We've been doing annual backdoor Roth contributions for my wife, but I never have because I have a rollover IRA from a previous employer's 401k. I now have a 457(b) with my current employer, which according to the plan highlights, will accept rollovers from a pre-tax IRA at any time. It sounds like I could merge my pre-tax IRA (rollover from previous employer's 401k) with my 457(b) and then be eligible for a backdoor Roth without having to worry about the pro-rate rule. Does that sound correct? Yes, it does sound correct. However, if the 457b plan is non-governmental you m...

Pinacoladapopsicle wrote: ↑Tue Mar 21, 2023 11:15 am

retired@50 wrote: ↑Tue Mar 21, 2023 11:11 am Do you have a 401k plan at work?

If so, will it accept the funds in the Traditional IRA?

Regards,

I do, and I'm not sure. Do you mean in the Traditional 401k? I can find out. If it does, would you recommend that I rollover there, instead of converting it?

Yes. Find out if they will accept the rollover from the T-IRA to your Traditional 401k plan.

If so, that's how I would approach this. It appears you're already in a high tax bracket, so converting now seems too costly from an income tax perspective.

Regards,

Investing1987 wrote: ↑Tue Mar 21, 2023 8:22 am
Any suggestions?

Other than your wife's objections, the UGMA sounds like it would suit your goal. See the linked wiki page for more detail and nuance.

Regards,